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Yeah It keeps the pin from coming out, it’s not a permanent fixture but it won’t fall out. That selector shaft seal is a replaceable part as the inside of it is a foam like material and wears overtime causing slop in the shift assembly.
It’s just a lock ring, don’t lose sleep over it.
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E90M3 - Satin Black
F97 X3M - Brooklyn Grey
E39 M5 - Silverstone
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